Banco Santander Reports H1 Profit Growth and TSB Branch Pledges

Banco Santander S.A. reported an underlying profit of €7.33 billion for the first half of 2026, marking a 15% increase. The group's total revenue for the period reached €30.85 billion, bolstered by a €1.9 billion net capital gain from the sale of Santander Bank Polska in January. The bank expanded its customer base to 182 million and confirmed it is on track to meet its 2026 profit targets, with a three-year plan aiming for profits above €20 billion by 2028.

In the United Kingdom, the group is managing the integration of TSB following a £2.65 billion acquisition in May. Santander UK pledged to keep 305 Santander and 175 TSB branches open until at least 2028, although the bank aims to save £400 million by 2028 through automation and artificial intelligence. The group incurred €250 million in restructuring costs related to the TSB integration.

Despite the parent company's growth, Santander UK saw pre-tax profits drop 31% to £528 million for the six months ending June 30. This decline was driven by restructuring costs, higher bad debt charges linked to the fallout of the Iran war, and a £179 million provision for a motor finance mis-selling scandal. The bank also forecast that UK interest rates will rise to 4% by the end of 2026 due to inflation.